Pacific Debt Relief: 2025 Review

Pacific Debt Relief can typically assist with any unsecured loan (a loan that doesn’t require you to use your home or other asset as collateral). This includes the following types of debt:  

• Business debts

• Collections

• Credit cards

• Lines of credit

• Medical bills

• Personal loans

• Private student loans 

• Repossessions

• Store cards

Ineligible debts

Pacific Debt Relief can't settle some kinds of debts, including those secured by collateral or debts imposed by a government or court. Ineligible debts include:

• Auto loans

• Debts from lawsuits or court judgments

• Governmental loans

• IRS debt 

• Mortgages or home loans 

• Utility bills

• Other secured debt

Like other debt settlement companies, Pacific Debt Relief negotiates and communicates with your creditors in an effort to settle your debt. The services offered include:

• Free consultation: You'll get a free one-on-one consultation with a program debt advisor to determine your eligibility, estimate the potential cost and see what your repayment plan could look like. 

• Client care representative set-up: If you decide to sign up, a client care representative will help you with initial tasks such as gathering the necessary documentation and managing creditor calls.

• Personal account manager: Once the debt relief plan begins, you'll be assigned a personal account manager. Your manager will contact you to authorize each settlement in writing before moving forward. 

• Monthly deposits: Instead of paying your creditor(s) each month, you’ll make a monthly deposit to an account with Pacific Debt Relief. Pacific will use these funds to pay down your settlement.

• Monthly updates: Your account manager should contact you monthly with a progress update on negotiations and where you are in the repayment process. It generally takes 24 to 48 months of qualifying payments to settle your accounts.

If a debt settlement cannot be reached, either because you don’t qualify or because you and your creditors cannot agree on terms, Pacific Debt Relief may talk to you about other debt relief solutions, including:

• Credit counseling

• Debt consolidation loans

• Filing bankruptcy

Like other debt relief companies, Pacific Debt Relief doesn't charge any upfront fees. Once negotiations are complete and your debt is settled, it gets paid a percentage of your settled debt. 

Fees typically range between 15 percent and 25 percent of your total settled debt, depending on the amount of debt at enrollment and your state of residence. These fees are rolled into your monthly payments, so you don’t have to pay a lump sum out of pocket when the debt is settled.

If you're unable to pay the fees charged for debt settlement services from Pacific Debt Relief, consequences may include the cancellation of services, reinstated collection efforts, potential legal action and further damage to your credit score.

Credit score consequences

Using a debt settlement company can negatively impact your credit score, especially if it has already declined due to missed payments. Working with a debt settlement service often involves stopping payments to your creditors, which can result in your debt being sent to collections. Accounts in collections remain on your credit report for up to seven years, further damaging your credit.

Additionally, once a debt is settled, your credit report will reflect the account as "settled" rather than "paid in full," which potential lenders may view less favorably.

On the positive side, completing a debt settlement program can improve your credit score over time by lowering your overall credit utilization ratio — a key factor in credit scoring.

Risks of debt settlement

Having some of your debt forgiven may sound like a great deal, but there are several risks of debt settlement, including:

• The process can take a full year or two.

• Debt settlement stays on your credit for many years after being completed.

• There are no guarantees that a creditor will negotiate with you, so you could destroy your credit without any positive results.

• The amount of debt forgiven as a result of the settlement could be counted as taxable income by the IRS, meaning you may have to pay income taxes on that amount.

• By the time you settle the debt, pay the debt relief company, cover any fees and pay taxes on the forgiven debt, you could end up paying more than if you had repaid the full debt on your own. 

Before proceeding with debt settlement, explore other debt-relief options, such as:

• Credit counseling: Credit counseling involves working with a certified counselor to create a personalized budget and repayment plan. These professionals can help you understand your financial situation, provide education on managing debt and negotiate with creditors to lower interest rates or waive fees without harming your credit score.

• Debt consolidation: Debt consolidation combines multiple debts into a single loan with a lower interest rate or more manageable monthly payments. This simplifies repayment and can save money on interest over time, but you'll need good credit to qualify for favorable terms.

• Debt management: A debt management plan is a structured program offered by credit counseling agencies that consolidates unsecured debts into one monthly payment. Counselors negotiate reduced interest rates and fees with creditors. While your credit accounts may be closed, this approach avoids the negative credit impact of debt settlement.

You must meet certain qualifications to enroll with Pacific Debt Relief and ensure that the program is a good fit for your financial situation. Here are the key criteria and requirements.

Minimum debt amount and types of debt

Pacific Debt Relief requires a minimum enrollment of $10,000 in debt to qualify for its services. The company focuses on helping individuals with unsecured debts, such as credit card debt, personal loans, medical bills or payday loans. Secured debts, such as mortgages, car loans or other loans backed by collateral, are not eligible.

Documentation requirements

To assess your eligibility and begin the enrollment process, you’ll typically need to provide the following:

• Proof of identity: A valid government-issued ID (driver's license, passport, etc.).

• Details of your debts: Copies of your most recent creditor statements for all eligible debts, including account numbers, balances and due dates.

• Proof of income: Pay stubs, tax returns or bank statements to demonstrate your financial situation and ability to make payments toward the settlement program.

• Monthly expenses: A breakdown of your household budget, including rent, utilities, groceries and other expenses, to determine how much you can afford to set aside for settlements.

Proof of financial hardship

You must show evidence of financial hardship, such as reduced income, job loss, medical expenses or other circumstances that make it impossible to pay off your debts in full. This information helps the company understand your situation and negotiate with creditors effectively.

Residency

Pacific Debt Relief services are not available in the state of Oregon.

Commitment to a monthly savings plan

To qualify, you must agree to make regular monthly deposits into a dedicated account managed by a third party. This account accumulates funds for negotiated settlements and pays Pacific Debt Relief’s fees. The amount you deposit is based on your total debt and the negotiated settlement plan.

How bankruptcy affects eligibility

If you are currently in bankruptcy proceedings, you will not qualify for Pacific Debt Relief services. However, you may be eligible if your bankruptcy case has been discharged.

• BBB rating and accreditation: BBB Accredited with an A+ Rating

• BBB customer reviews: 4.93 out of 1,976 reviews

• ConsumerAffairs: 4.9 out of 555 reviews

• Google reviews: 4.6 out of 262 reviews

• Trustpilot: 4.7 out of 1,919 reviews

Review information accurate as of December 28, 2024.

Pacific Debt Relief has developed a reputation for excellent customer service. It has an A+ Better Business Bureau (BBB) rating and an average of 4.93 out of 5 stars. In the past three years, only six customer complaints have been submitted to the BBB about the company, and each was quickly resolved to the consumer’s satisfaction.

As is often the case with debt relief companies, Pacific Debt Relief tends to receive poor reviews from clients who saw their credit scores drop and were disappointed with the length of the process. 

Accreditations

Pacific Debt Relief holds the following accreditations and certifications:

• Accredited by the Better Business Bureau (BBB)

• Accredited by the Consumer Debt Relief Initiative (CDRI)

• Certified by the International Association of Professional Debt Arbitrators (IAPDA)

Phone: 833-865-2028

Operating hours: 

• Monday through Thursday: 6 a.m. to 7 p.m. PST

• Friday: 6 a.m. to 4:30 p.m. PST

• Saturday: 7:30 a.m. to 4:30 p.m. PST

Address: 750 B Street, Suite 1700, San Diego, CA 92101

Fax: 619-238-6709

Email: cs@pacificdebt.com (clients) / inquiries@pacificdebt.com (non-client inquiries)

Social media:

• Facebook

• Instagram

• X

• YouTube

• LinkedIn